India's largest fast-moving consumer goods major Hindustan Unilever (HUL) on Friday reported a 17% year-on-year surge in net profit at Rs. 806 crore, aided by a strong performance in its domestic consumer goods business due to improved rural demand.
The earnings of the company, which sells brands such as Fair and Lovely, Dove and Clinic Plus, beat market expectations of a Rs. 770-crore profit.
Riding on the back of improved rural penetration, the company's consumer goods business delivered a 16% growth in sales at Rs. 5,875 crore against Rs. 5,066 crore a year ago.
The company saw its total revenues surge 12% at Rs. 6,155 crore during the quarter.
"In a volatile and uncertain environment, we continue to sustain our growth momentum while steadily improving our margins," said Harish Manwani, chairman, HUL.
"We have a disciplined approach and follow a three-year pipeline for innovation. Thus the preparation is for the long-term."
Beverages grew 10% led by premium tea and coffee, while packaged foods grew 10% driven by key brands such as Knorr.
Soaps and detergents business grow 22% led by Surf and Rin and household care registered double-digit growth.
HUL stepped up its premiumisation drive and relaunched many of its products.